Shriram Transport Finance Co.Ltd vs Abdul Bashir Attar and Anr. — Bombay HC (2026) — LawSathi Research

Shriram Transport Finance Co.Ltd vs Abdul Bashir Attar and Anr. — Bombay HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Arbitral awards declared non-est in law, non-executable and void-ab-initio; Execution Applications dismissed; Interim Applications disposed of; parties permitted to initiate fresh arbitration, with the period from invocation of arbitration till 10 April 2026 excluded for limitation.

Issue for consideration

Whether arbitral awards passed by a unilaterally appointed sole arbitrator are executable, or can be declared void-ab-initio and non-executable even at the stage of execution.

Court's answer

The arbitral awards in the present proceedings, passed by a unilaterally appointed sole arbitrator, are declared non-est in law, non-executable and void-ab-initio.

Ratio / Principle

The Execution Applications stand dismissed.

Key takeaways

The Interim Applications, if any, stand disposed of.ratio¶32
It shall be open for the parties to initiate fresh arbitration proceedings in accordance with law.ratio¶34
For the purpose of initiating fresh arbitration proceedings, the period from the invocation of the arbitration till the date of this order shall stand excluded for limitation.ratio

Detailed headnote1 paragraphs

High Court of Judicature at Bombay (OO CJ), Rajesh S. Patil, J. (10 April 2026): Batch of six Execution Applications (EXA/1579/2022, EXA/1795/2022, EXA/2292/2022, EXA/2301/2022, EXA/2462/2022, EXA/2463/2022) by AU Small Finance Bank Ltd., Shriram Transport Finance Co. Ltd. and Aphelion Finance Pvt. Ltd., called out with none appearing. Taking into account his own earlier judgment in L & T Finance Ltd. v. Sangeeta Bhansali & Anr. (Comm. Exn. Appl. (L) No. 5277 of 2022) and the Supreme Court's judgment of 5 January 2026 in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India (C.A. Nos. 37-38 of 2026), the Judge held that even at the stage of execution an arbitral award can be set aside as void-ab-initio where the sole arbitrator's appointment was unilateral. Accordingly, the arbitral awards in these proceedings were declared non-est in law, non-executable and void-ab-initio; the Execution Applications stood dismissed and the Interim Applications disposed of; the parties were left free to initiate fresh arbitration, with the period from invocation of arbitration till the date of the order excluded for limitation.

026:BHC-OS:1

Diksha Rane 17, 18,20, 21, 23, 24 EXA 1579 2022 & ORS..doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

17 EXA/1579/2022 WITH IA/2446/2023 IN EXA/1579/2022

AU SMALL FINANCE BANK LTD. ..APPLICANT VS MAYANK TOURS AND TRAVELS AND 2 ORS ..RESPONDENTS

WITH 18 EXA/1795/2022 IN IA/2724/2023 IN EXA/1795/2022

AU SMALL FINANCE BANK LTD. ..APPLICANT VS PANDURANG DHONDIRAM KHARAT AND ANR. ..RESPONDENTS

WITH 20 EXA/2292/2022 WITH N/720/2025 IN EXA/2292/2022

SHRIRAM TRANSPORT FINANCE CO. LTD. ..APPLICANT VS ABDUL BASHIR ATTAR AND ANR ..RESPONDENTS WITH 21 EXA/2301/2022 WITH IA/4936/2022 IN EXA/2301/2022 APHELION FINANCE PRIVATE LIMITED ..APPLICANT VS DHANIRAM RAMAYAN DUBEY ..RESPONDENT

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Diksha Rane 17, 18,20, 21, 23, 24 EXA 1579 2022 & ORS..doc

WITH 23 EXA/2462/2022 WITH IA/4919/2022 IN EXA/2462/2022

APHELION FINANCE PVT.LTD. ..APPLICANT VS ROSHAN VASANT BHOJANE AND 2 ORS. ..RESPONDENTS

WITH 24 EXA/2463/2022 WITH IA/4918/2022 IN EXA/2463/2022

APHELION FINANCE PVT. LTD. VS PRAVIN BABURAO NAIK

..APPLICANT

..RESPONDENT

None present.

-----------CORAM : RAJESH S. PATIL, J.

DATE : 10 APRIL 2026.

P.C. :

None appears for the applicants, when these matters are

called out.

From the proceedings, it can be gathered that the appointment of the sole arbitrator was unilateral.

I have taken a view in the judgment of L & T Finance Ltd. vs. Sangeeta Bhansali & Anr. in Commercial Execution

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Diksha Rane 17, 18,20, 21, 23, 24 EXA 1579 2022 & ORS..doc

Application (L) No. 5277 of 2022, considering the latest judgment of the Supreme Court decided on 5 January, 2026, in the matter of Bhadra International (India) Pvt. Ltd. and others vs. Airport Authority of India, Civil Appeal No. 37-38 of 2026, wherein it has been held that even at the stage of execution, an arbitral award can be set aside being void-ab-initio on the grounds that the appointment of the arbitrator was unilateral.

In view of the aforesaid judgment, the arbitral awards in

the present proceedings passed by the sole arbitrator is hereby declared to be non-est in law, non-executable and void-ab-initio.

1. Execution Applications stand dismissed .

1. In sequel, the Interim Applications, if any, also stand

disposed of.

It shall be open for the parties to initiate fresh arbitration proceedings in accordance with law.

As far as limitation is concerned, the period from the invocation of the arbitration till today shall stand excluded for the

purpose of initiating fresh arbitration proceedings.

(Rajesh S. Patil, J.)

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Signed by: Diksha Rane Designation: PS To Honourable Judge Date: 10/04/2026 19:38:04